Building a sustainable future our agenda and our contribution launch of the corporate sustainable development report 2007 june 2 2008 holcim ltd switzerland

© 2008 Holcim Ltd/Switzerland
Building a sustainable future:
Our agenda and our contribution
Launch of the Corporate Sustainable Development Report 2007
June 2, 2008
2
© 2008 Holcim Ltd/Switzerland
2002
Sustainable Development is a continuous journey
2003
2005
2007
Our SD journey started decades ago and is an integral part of
our business strategy.
3
© 2008 Holcim Ltd/Switzerland
Sustainable Development Report 2007 - Facts
 Reduction of CO2 and other atmospheric emissions
 On track to reach 2010 target
 Partnerships with
 IUCN on biodiversity (new)
 GTZ on AFR (continued)
 OH&S performance
 Improvements, yet further efforts needed
 CSR and stakeholder engagement
 Community spending and Community Advisory Panels
increased
 External assurance and broad external recognition
4
© 2008 Holcim Ltd/Switzerland
Vision, strategy and corporate governance

Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
5
© 2008 Holcim Ltd/Switzerland
Sustainable Development: A part of our mission
Vision: We want to provide foundations for society's
future.
Mission: We want to be the world's most respected and
attractive company in our industry – creating value for all
our stakeholders.
Holcim Strategy House:
Working within the triple
bottom line
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
6
© 2008 Holcim Ltd/Switzerland
 High standards of Corporate Governance and Code of
Conduct implemented
 Governance structure and committees set up

 External assurance of the CSDR 2007 and CO
2 data
Corporate Governance
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
9
Audit Committee
(all 3 members independent)
9
Governance, Nomination & Compensation Committee
(all 4 members independent)
9
Assessment of Board, Committees and CEO
9
Single share: one share = one vote
9
Policy landscape and directives
9
Business Risk Management
9
Internal Audit
9
Corporate Governance Reporting
9
Corporate Sustainable Development Report

7
© 2008 Holcim Ltd/Switzerland
The business place
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
8
© 2008 Holcim Ltd/Switzerland
Value creation
 Value creation for Holcim and our stakeholders
 CHF 4.6 billion to employees
 CHF 2.0 billion to shareholders and creditors
 CHF 1.2 billion to governments
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
9
© 2008 Holcim Ltd/Switzerland
Population growth and urbanization
 World population to increase to more than 8 billion by 2030
 World is facing the largest mass migration in history
 Sustainable construction will be key to securing long-term

environmental, economic and social viability
Buenos Aires
Rio de Janeiro
São Paulo
New York
Lagos
Cairo
Jakarta
Manila
Osaka
Karachi
Mumbai
Shanghai
Kolkata
Dhaka
Moscow
London
Istanbul
Seoul
Delhi
Beijing
Los Angeles
Tokyo
Served by Holcim today
Buenos Aires
Rio de Janeiro
São Paulo
Mexico City
New York
Lagos

Jakarta
Manila
Osaka
Karachi
Mumbai
Kolkata
Dhaka
London
Istanbul
Seoul
Delhi
Los Angeles
Tokyo
Cities with over 10 million inhabitants
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
10
© 2008 Holcim Ltd/Switzerland
Source: World Green Building Council, The ecological footprint
The ecological footprint
Wood
harvest
CO2
emissions
Energy use Raw

material use
30 – 40% 40 – 50%17% 25% 33%
Fresh water
consumption
Worldwide, buildings account for up to …
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
11
© 2008 Holcim Ltd/Switzerland
Concrete is an indispensible building material
 High significance for economic development
 Modern infrastructure inconceivable without concrete
 Second most used commodity by volume after water
 Due to its natural thermal inertia, long life cycle and
reusability, one of the most energy-efficient and eco-friendly
materials
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
12
© 2008 Holcim Ltd/Switzerland

Innovation potential along the value chain
Process innovation:
 Waste derived fuels an important source of energy
Product innovation:
 Eco-efficient product range: Composite cement share
increased from 30% (1990) to over 75% (2007)
 Use of recycled products for our aggregates activities is
growing
2007
1990
75% Composite
cement
Ordinary
Portland
cement
Ordinary
Portland
cement
30% Composite
cement
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
13
© 2008 Holcim Ltd/Switzerland
Holcim Foundation for Sustainable Construction

 Platform to promote sustainable construction
 Activities include: Holcim Awards competitions, Holcim
Forum, seed funding for building initiatives and research
 2nd Awards cycle: 5,000 ideas to build a sustainable future
14
© 2008 Holcim Ltd/Switzerland
Italy
USA
Venezuela South Africa Spain
PhilippinesChina
Germany
Holcim Awards: from idea to reality
15
© 2008 Holcim Ltd/Switzerland
Environmental performance
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
16
© 2008 Holcim Ltd/Switzerland
Successfully reducing CO2 emissions
Since 1990:
 103% increase of our total cement production – absolute CO2
emissions increased by only 70%
 16.3% reduction in net CO2 emissions per tonne cementitious
material

 Voluntary target of 20% reduction per tonne by 2010 within
reach
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
17
© 2008 Holcim Ltd/Switzerland
 Lowering the clinker factor is
one of the best approaches
for reducing
CO2 emissions
 The use of alternative fuels
contribute to decrease fossil
fuel use and costs
Drivers of CO2 reduction
Indonesia: Rice husks offer an important source of biofuel energy
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
18
© 2008 Holcim Ltd/Switzerland
Controlling other atmospheric emissions

 Our target is to reduce specific NOx, SO2 and dust emissions
by 20% by 2010 compared to 2004 levels
 Ongoing investments in plant equipment and training
 Results:
 SO2 target already achieved
 On track to reach dust targets
 Further measures taken to reach NOx target
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
19
© 2008 Holcim Ltd/Switzerland
Conserving ecosystems and biodiversity
 Production of cement and aggregates depends on access to
raw materials
 Commitment to quarry rehabilitation and biodiversity
conservation
 Collaboration with IUCN extends and builds on our efforts
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
20

© 2008 Holcim Ltd/Switzerland
Social commitment
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
21
© 2008 Holcim Ltd/Switzerland
Safety at work is of paramount importance
 Health and safety are vital to business success
 Despite improvement in Lost Time Injury Frequency Rate
(LTIFR), overall performance is unsatisfactory
 Improving the safety record remains a high priority
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
22
© 2008 Holcim Ltd/Switzerland
Safety awareness initiatives
 Example Holcim Ecuador: ¡para y piensa en mi!
Vision, strategy
& governance
The business place

Environmental
performance
Social
performance
23
© 2008 Holcim Ltd/Switzerland
Effective social commitment
 Holcim CSR approach is strategic, not philanthropic
 Education, building infrastructure and community development
are our focus areas
 Community spending of CHF 48 million in 2007
 equaling 1% of net income before tax
 increase of 33% from 2006
Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
24
© 2008 Holcim Ltd/Switzerland
Stakeholder engagement
 At local level:
 Half of all Group companies have community advisory
panels
 9 out of 10 conduct stakeholder dialogue
 A majority involve stakeholders in CSR planning
 Our alliances with the WBCSD and the UN Global Compact
help to make step changes

Vision, strategy
& governance
The business place
Environmental
performance
Social
performance
25
© 2008 Holcim Ltd/Switzerland
Commitment across the Group
 Awards won by Group companies are evidence of this
commitment
 SD reports of local Group companies are available on
www.holcim.com
 SD performance continues to be widely recognized